June 1, 2010, Introduced by Senator GEORGE and referred to the Committee on Campaign and Election Oversight.
A bill to regulate political activity; to regulate certain
candidates for elective office; to require financial statements and
reports; to prescribe the powers and duties of certain state and
local governmental officers and agencies; to impose fees; and to
prescribe penalties and civil sanctions.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"constitutional convention delegate financial disclosure act".
Sec. 2. As used in this act:
(a) "Candidate" means that term as defined in section 3 of the
Michigan campaign finance act, 1976 PA 388, MCL 169.203.
(b) "Earned income" means salaries, tips, and other
compensation, and net earnings from self-employment for the taxable
year.
(c) "Income" means money or any thing of value received, or to
be received as a claim on future services, whether in the form of a
fee, salary, expense, allowance, forbearance, forgiveness,
interest, dividend, royalty, rent, capital gain, or any other form
of recompense that is considered income under the internal revenue
code of 1986, 26 USC 1 to 9834.
(d) "Member of the immediate family" means dependent child,
spouse, or person claimed by the individual or the individual's
spouse as a dependent for federal income tax purposes.
(e) "Principal residence" means that term as defined under
section 7dd of the general property tax act, 1893 PA 206, MCL
211.7dd.
Sec. 3. If an individual is a candidate for constitutional
convention delegate, that individual shall file with the secretary
of state a report that meets the requirements of section 4 within
30 days after the date on which the individual first receives a
contribution, makes an expenditure, or gives consent for another
person to receive a contribution or make an expenditure with the
purpose or intent of bringing about the individual's nomination or
election, or the date on which the individual forms a candidate
committee as a candidate under section 21 of the Michigan campaign
finance act, 1976 PA 388, MCL 169.221.
Sec. 4. Subject to section 5, a report required by section 3
shall include a complete statement of all of the following:
(a) The full name, address, and occupation of the individual
filing the report.
(b) The name of each member of the immediate family of the
individual filing the report.
(c) The name and address of each employer of the individual
filing the report during the calendar year covered by the report.
(d) Both of the following, as applicable:
(i) The source, type, and amount or value of earned income
received during the preceding calendar year by the individual
filing the report if the total earned income from that source
equals $10,000.00 or more during that calendar year.
(ii) The source and type of earned income received during the
preceding calendar year by the spouse of the individual filing the
report if the total earned income from that source equals
$10,000.00 or more during that calendar year.
(e) The source, type, and amount or value of all other income
not reported under subdivision (d) that is received during the
preceding calendar year by the individual filing the report or a
member of the immediate family of that individual if the total
income from that source equals $10,000.00 or more during that
calendar year.
(f) The identity and value of each asset held during the
preceding calendar year by the individual filing the report or a
member of the immediate family of that individual, including real
or personal property or cash, if the asset had a fair market value
of $10,000.00 or more at any time the asset was held during the
preceding calendar year. However, if the individual filing the
report owns or has an interest in all or a portion of a farm or
business, the identity and value of each asset held during the
preceding year that is used in the operation of the farm or
business is not required to be reported under this subdivision if
the report includes a complete statement of the identity and value
of the farm or business.
(g) The identity and value of each liability owed during the
preceding calendar year by the individual filing the report or a
member of the immediate family of that individual if the amount of
the liability was $10,000.00 or more at any time during the
preceding calendar year. This subdivision does not apply to loans
secured by the principal residence of the individual filing the
report or by a personal motor vehicle, household furniture, or
appliance, if the loans do not exceed the greater of the purchase
price or the market value of the item that secures the liability.
(h) A brief description and value of a purchase, sale, or
exchange of real property or of stocks, bonds, commodities,
futures, or other forms of securities during the preceding calendar
year by the individual filing the report or a member of the
immediate family of that individual, if the value is $10,000.00 or
more. This subdivision does not require a description of each
purchase, sale, or exchange of stocks, bonds, commodities, or other
forms of securities if those items are part of a mutual fund and if
the identity and value of the mutual fund is otherwise reported
under this act.
(i) Except as otherwise provided by this subdivision, the
identity of all positions held by the individual filing the report
during the preceding calendar year as an officer, director, member,
trustee, partner, proprietor, representative, employee, or
consultant of a corporation, limited liability company, limited
partnership, partnership, or other business enterprise; of a
nonprofit organization; of a labor organization; or of an
educational or other institution other than this state. An
individual filing the report who is required to have a license to
practice or engage in a particular occupation or profession is not
required to identify a position held as a consultant of a
corporation unless the corporation is a publicly held corporation
that has shares that are listed or traded over the counter or on an
organized exchange or has gross revenues over $4,000,000.00. This
subdivision does not require the reporting of a position held in a
religious, social, fraternal, or political entity, or of a position
solely of an honorary nature.
(j) If the individual filing the report has an agreement or
has made an arrangement with respect to future employment, a leave
of absence during that individual's term of office, continuation of
payments by a former employer, or continuation of participation in
an employee benefit plan maintained by a former employer, a
description of the agreement or arrangement, including the dates,
parties, and terms.
Sec. 5. (1) An amount or value reported under section 4(d),
(e), (f), or (h) shall be reported by category as follows:
(a) $10,000.00 or more but less than $50,000.00.
(b) $50,000.00 or more but less than $100,000.00.
(c) $100,000.00 or more but less than $500,000.00.
(d) $500,000.00 or more.
(2) An amount or value reported under section 4(g) shall be
reported by category as follows:
(a) $10,000.00 or more but less than $50,000.00.
(b) $50,000.00 or more but less than $100,000.00.
(c) $100,000.00 or more but less than $500,000.00.
(d) $500,000.00 or more.
(3) Instead of specifying the category of the amount or value
of an item in a report under this act, an individual may indicate
the exact amount or value of the item.
Sec. 6. The secretary of state shall do all of the following:
(a) Prepare and make available appropriate forms and
instructions for the reports required by this act.
(b) Receive reports required by this act.
(c) As soon as practicable, but not later than the end of the
business day on which a report required to be filed under this act
is received, make the report or all of the contents of the report
available without charge to the public on the internet at a single
website established and maintained by the secretary of state, and
not later than the third business day following the day on which
the report is received, make the report available for public
inspection and reproduction during regular business hours.
(d) Promulgate rules and issue declaratory rulings to
implement this act pursuant to the administrative procedures act of
1969, 1969 PA 306, MCL 24.201 to 24.328.
(e) Conduct investigations as necessary to determine whether
there is reason to believe that a violation of this act occurred.
Investigations shall be conducted pursuant to the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Sec. 7. (1) A citizen of this state may file a complaint with
the secretary of state alleging a violation of this act. The
secretary of state, upon receipt of a complaint, shall investigate
the allegations as provided in section 6.
(2) If the secretary of state, upon investigation, determines
that there is reason to believe that a violation of this act
occurred, the secretary of state shall forward the results of that
investigation to the attorney general for enforcement of this act.
Sec. 8. (1) An individual who fails to file a report as
required under this act shall pay a late filing fee not to exceed
$10,000.00, determined as follows:
(a) $50.00 dollars for each of the first 3 business days that
the report remains unfiled.
(b) $100.00 dollars for each of the next 7 business days after
the first 3 business days that the report remains unfiled.
(c) $1,000.00 dollars for each business day after the first 10
business days that the report remains unfiled.
(2) If an individual required to file a report under this act
knowingly files an incomplete or inaccurate report, the individual
is guilty of a misdemeanor punishable by imprisonment for not more
than 90 days or a fine of not more than $10,000.00, or both.